Latest Financial Support Packages
Hospitality Ulster in partnership with:
All businesses will be impacted in some way by the ongoing COVID-19 outbreak. We are working with clients to find practical solutions to protect staff and to preserve the underlying businesses in these very difficult and trying times.
In the short term, our advice to clients is as follows:
1.Prepare a short term cash flow forecast, taking into consideration prudent assumptions for business revenues going forward
2.Review all costs and take measures to reduce outlays where possible – consider flexible options around staff pay, holidays and overtime
3.Contact key suppliers to discuss payment terms
4.Liaise with HMRC regarding time to pay arrangements
5.Determine the businesses’ short term funding requirement
6.Liaise with funders and key stakeholders regarding immediate cash funding options
To assist businesses to deal with the challenges, Government has introduced a number of financial support packages.
These are continually evolving on a day by day basis, so, the relevant links are attached so that you can see updates on each:
CATEGORY
Large Businesses
FUNDING OPTIONS
Covid Corporate Financing Facility (CCFF)
KEY POINTS / CRITERIA
·This facility will provide funding to businesses by purchasing commercial paper of up to one-year maturity, issued by firms making a material contribution to the UK economy.
·This facility will consider the temporary impacts on firms’ balance sheets and cash flows by basing eligibility on firms’ credit ratings prior to the Covid-19 shock.
·Open from 23 March 2020 - Issuers should contact the Bank at applications@bankofengland.co.uk
CATEGORY
SME
FUNDING OPTIONS
Interruption Loan Scheme
KEY POINTS / CRITERIA
·The Government will provide Lenders with a guarantee of 80% on each loan.
·Loans of up to £5 million in value, including Term Facilities, Overdrafts, Invoice Finance and Asset Finance.
·Businesses can access the first 6 months of that finance interest free.
·Businesses are fully responsible for the repayment of the facility.
·Open from 23 March 2020.
CATEGORY
SME
FUNDING OPTIONS
Business Rate Relief
KEY POINTS / CRITERIA
·Provision of a 3 month rates payment holiday for April – June 2020
CATEGORY
SME
FUNDING OPTIONS
Grants
KEY POINTS / CRITERIA
·Small businesses eligible for the Small Business Rate Relief Scheme, with a Net Asset Value of up to £15,000 are eligible for cash grants of c£10,000.
·Medium businesses with a rateable value of between £15,000 and £51,000 in the most affected sectors, being, retail, hospitality and tourism, will be able to access grants of £25,000.
CATEGORY
SME
FUNDING OPTIONS
HMRC
KEY POINTS / CRITERIA
·Support will include agreeing a bespoke Time To Pay arrangement with HMRC.
·This will help those struggling with cash flow and allow those who enter into arrangements to spread liabilities owed over a pre-agreed period.
·In addition, HMRC will waive late payment penalties and interest where businesses experience administrative difficulties contacting HMRC or paying taxes due to COVID-19.
·As always, it will be important to get upfront agreement from HMRC before a payment deadline
CATEGORY
SME
FUNDING OPTIONS
Statutory Sick Pay Relief (SSP)
KEY POINTS / CRITERIA
·All employees who self-isolate will be able to claim SSP.
·SSP claims can be made from Day 1 rather than Day 4 of illness. Employees who are caring for someone who is self-isolating will also be able to claim SSP on this basis.
·Businesses with fewer than 250 employees as at 28 February 2020 will be able to reclaim SSP expenditure up to a maximum of two weeks per employee from the government
CATEGORY
Individuals
FUNDING OPTIONS
Mortgage Payments
KEY POINTS / CRITERIA
·Mortgage lenders have agreed that they will support customers through payment holidays of up to 3 months
FOR MORE INFORMATION REFER TO YOUR INDIVIDUAL MORTGAGE SITE
CATEGORY
Individuals
FUNDING OPTIONS
Interest Rates
KEY POINTS / CRITERIA
·Interest rate cute to 0.1%
Communication with stakeholders is critical. Businesses must act immediately and consider all options.
If we can be of any assistance to you, please reach out to our team and we will work together to find a solution.
You can contact us at www.bdoni.com or on 028 9043 9009